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The game is very similar to its predecessor in terms of gameplay; it is mostly set in a series of 3D battle arenas mostly modeled after notable locations in the Dragon Ball universe, with the central hub being an expanded version of Toki-Toki City, called Conton City. As reported by the creators of the game, Conton City is seven times larger than Toki-Toki City. Players are able to freely traverse this new hub world, and in some areas are even capable of flying around, however this feature will not be available from start, instead being unlocked. Players will also be able to travel to other hubs such as the Namekian Village and Frieza's ship. Some skills will have to be learned through masters, like the previous game. However, some masters will be found exclusively in these extra hubs. Xenoverse 2 is the fourth Dragon Ball video game to feature character customization. Players are able to choose from the five races of the first game: Humans, Saiyans, Majins, Namekians and Frieza's race. The game also features race-specific quests, minigames and transformations (the latter of which was only available to Saiyans in the first game, via the Super Saiyan forms). Players also have a much greater role in the story, as some decisions will have to be made by them. Multiplayer servers are now able to hold up to 300 players at once. The game also has a training mode called Training School. The player can use different kinds of ki blasts (Power, Homing, Rush, Paralyze and Bomb), and the ki blast type depends on the player's race or Super Soul. Another interesting element in the game is that players will be able to transfer their previous data from Dragon Ball XV 2's predecessor, Dragon Ball Xenoverse. This results in the game's details changing in a way that so players will be able to see the character known as the Toki Toki City's "Hero" in the middle of the square. Players also have the choice not to do this, which results as the default character being the "Hero".

Two and-a-half years after the events of the first game, the protagonist receives a special mission from Elder Kai, which involves correcting history after it has changed. On the way there, they meet the Supreme Kai of Time, a deity who watches over time, and her bird, TokiToki. After meeting Elder Kai, they are granted their first mission, which is to correct Goku's battle with Raditz after he's been enhanced by dark magic. Meanwhile, Towa and Mira, the people who've caused history to change, have gathered allies, Turles, Lord Slug and a mysterious Masked Saiyan, later revealed to by Goku's father Bardock, from different parts of the timeline.

During the Attack of the Saiyans Saga, Turles attempts to intercept Goku to prevent him from assisting the Z Fighters against Nappa and Vegeta, only to be stopped by the combined forces of the Time Patroller and Goku. During the battle, Trunks and his partner, the protagonist from the first Xenoverse game, try to capture Turles, but he escapes before the Time Patroller can stop him. The protagonist then returns to the Time Nest after defeating Great Ape Nappa and Great Ape Vegeta, and correcting history. There, they are introduced to Trunks and his partner, and it is announced that TokiToki is laying an egg, which gives birth to another universe. During the Namek Saga, the Time Patroller helps Gohan and Krillin from escaping from Dodoria and Zarbon. After the battle Lord Slug appears and fights the Time Patroller. After the battle, the Time Patroller returns to the Time Nest only find out that Captain Ginyu had switched bodies with Vegeta instead of Goku. The Time Patroller and Trunks attempts to fix this but in doing so, Ginyu switches bodies with Trunks. After the mishap, Ginyu finally switches bodies with Goku. (As part of the original timeline). After fighting the Ginyu possessed Goku, Ginyu returns to his body and attempts to switch bodies with the Time Patroller but Goku throws a Namekian frog in the beam, causing Ginyu to be a frog. The Time Patroller then must help Nail fight Frieza in order for Gohan and Krillin to obtain the secret password. Frieza beats Nail and flies off to stop the Z Fighters. Turles and Slug then arrive, having gathered all the Dragon Balls each wanted to use them for their own goals. Trunks and the Time Patroller defeats both Turles and Slug. The Time Patroller then must help Gohan and the others defeat Frieza (who has already transformed into his final form). Frieza defeats Vegeta and the others while the Time Patroller fights until Goku arrives and defeats him with the Spirit Bomb. Frieza survives and critically injures Piccolo and obliterates Krillin, causing Goku to transform into a Super Saiyan. The Time Patroller and Goku fight Frieza, and the planet is destroyed by Frieza. During the battle, Cooler arrives to help Frieza due to a distortion in time by Towa. The player defeats Cooler, and returns to the Time Nest to leave Goku to fight Frieza, thus restoring the timeline.

Meanwhile, Trunks and his partner fight Mira. Mira escapes and Trunks's partner chases after him. Soon after the Time Patroller travels to the Cell Saga in order to restore the timeline to its original flow of history. During the battle, Towa causes another distortion which causes the Metal Coolers to arrive at the Cell Games. With help from Trunks, the Time Patroller destroyes the Metal Coolers. The Time Patroller then helps Gohan defeat Cell. Soon after, the Time Patroller goes to fix the distortion in time in which Future Gohan is killed by the Androids. Android 16 is activated and is defeated by Gohan and the Time Patroller. Android 17 and 18 arrive and have Gohan in the defensive, causing Trunks to intervene and help Gohan and the Time Patroller fight. Afterwards, Trunks tries to help Gohan defeat the Androids once and for all, but is stopped by the Time Patroller due to the Supreme Kai of Time stating that history would be changed. Because of this history, Trunks must take a break from time patrolling. The Time Patroller then travels to the Majin Buu era to fix the distortion in which Majin Vegeta sacrificed himself to defeat Majin Buu. Broly arrives, consumed by Towa's dark energy and attempts to kill Goku, Vegeta and Buu, but is stopped by the Time Patroller. Vegeta sacrifices himself to destroy Majin Buu, restoring the current flow of history. The Time Patroller then goes to the timeline where Goku and Vegeta defeat Kid Buu, learning that the Masked Sayain is there collecting energy from the fighters. The Time Patroller chases after him and teleports to the era where Beerus and Goku are fighting. The Time Patroller defeats the Sayian, breaking his mask and revealing himself to be Bardock. Mira arrives and engages in battle with the Time Patroller. Beerus interrupts the battle with the intention to destroy Mira, Goku, the Time Patroller, and Earth. The Surpreme Kai of Time tries to calm Beerus down with her pudding, but the horrible taste drives Beerus into a fit of rage, and he is subdued by Whis and the Time Patroller. Soon after, the Time Patroller travels to the Golden Frieza Saga, in which Frieza has been resurrected and wants revenge on Goku. During the battle, Cooler shows up again, consumed by dark energy and Frieza is consumed as well while in his Golden Form. Towa hacks into the Time Nest and tricks Beerus and Whis into leaving the battle, which allows Frieza to destroy the universe. Whis is able to rewind time and the Time Patroller, along with Goku and Vegeta, kill Cooler and Frieza.

Later, Beerus and Whis train the Time Patroller preparing him for the final battle with Towa and Mira. Trunks and the Time Patroller go to an unidentfied timeline and battle the mind controlled Bardock. Mira arrives and battles the two, and Bardock is knocked back to his senses. He drags Mira into a time rift and both are supposedly disappeared. Towa then arrives and reveals that she has taken control of Trunks's partner. The Time Patroller and Trunks battle the two and retrieve the mask which Trunks's partner was wearing. Trunks's partner then vanishes from existence, leaving Trunks and the Time Patroller with no memory of him. The scrolls then pick up another distortion in time, causing Trunks to remember his partner and realizes that Towa went back in time to prevent Trunks from summoning him. The Time Patroller fixes this distortion and Trunks's partner is revived. Towa arrives at the Time Nest, and steals TokiToki's egg. Mira returns (Bardock defeats Mira as a Super Saiyan 3 but left him afterwards) and easily disposes of Trunks and his partner. The Time Patroller confronts Mira, who has become more powerful, finally gaining a fighting spirit because of his battle with Bardock. Towa realizes this and learns that Mira could destroy the entire history of the universe. She helps the Time Patroller defeat Mira. When she suggests to fix Mira's power core, he turns on her and absorbs her and the egg, gaining incredible power. Goku arrives and turns Super Saiyan Blue and helps the Time Patroller finally destroy Mira. With the universe saved, the Dragon Balls are used to summon a big feast for all of Conton City. The game ends with Goku suggesting that the Time Patroller and the Time Patroller from the first game fight each other to see who is stronger.

The game was originally teased by Bandai Namco Entertainment on May 16, 2016, as a new "Dragon Ball project", with it being announced on May 17, 2016.[2][3] A Bandai Namco spokesperson confirmed that the game would be released on the PlayStation 4 in Japan, and for PlayStation 4, Xbox One, and Windows in North America and Europe.[8] Bandai Namco announced at E3 2016 that the game would run at a frame rate of 60 frames per second on all three platforms, would have a hub city that is seven times larger than its predecessor, and would also feature a new transportation system.[9]

An open and closed beta for Xenoverse 2 was announced by Bandai Namco.[10] Both the open and closed beta were available on PlayStation 4 only.[11] The closed beta began on October 8 and ended on October 10, and the open beta began on October 14 and ended on October 17.[11]

The Collector's Edition of the game includes the game disc, a soundtrack CD, a collector's box, an exclusive steelbook case, a Time Patroller's Guide artbook (which includes an exclusive manga based on the game),[12] and a statue of Super Saiyan Goku. It is available for Xbox One and PlayStation 4.[13]

A Nintendo Switch port was revealed on January 12, 2017 in the Nintendo Switch's "Software Line-Up" Video.[7]

A total of six downloadable content packs were released. A DLC Pack 7 has been announced but not released yet. Each pack includes at least two characters, new moves, skills, parallel quests and other elements for the created characters.

Dragon Ball Xenoverse 2 has shipped 1.4 million copies worldwide.[26] As of November 27, 2016, the PS4 version has sold 87,105 copies in Japan.[27] The Nintendo Switch version debuted at number three on the Japanese sales charts, with 24,045 copies sold[28] and later sold 500,000 copies worldwide, by 2018.[29]

Dragon Ball Xenoverse 2 received positive reviews. Critics praised the game's anime visual style, sound, and fighting gameplay but criticized the controls, repetitive nature and overall similarity to the previous installment. Aggregating review websites GameRankings and Metacritic gave the game 72% based on 57 reviews[18] and 72/100 based on 27 reviews.[17]

IGN awarded it a score of 7.5 out of 10, saying "Dragon Ball Xenoverse 2 is an ambitious, if rough-edged experience, with deceptively deep RPG and brawling elements."[30]Hardcore Gamer awarded it 3 out of 5, calling "a minimal improvement over its predecessor while sharing a lot of the same issues, but there’s just something so endearing about how it all came together."[31]

Heidi Kemps of GameSpot awarded the game a 7 out of 10, praising the combat and fan service while criticizing the combat for being repetitive and the missions with a non-combat focus as "generally poor".[32] Kyle Hilliard of Game Informer also awarded it a 7 out of 10, praising the addition of Conton City but criticized the combat system for being almost identical to the first Xenoverse game and the soundtrack as "consistently awful".[33]

Ashley Fonte from Games Mojo awarded it 4.3 out of 5 stars stating that "Dragon Ball Xenoverse 2 is an exciting anime game with a unique and ambitious concept that is familiar to the fans of the Dragon Ball Z series and will give them an enjoyable playing experience."[23] Alastair Stevensons score of 3.5/5 on Trusted Reviews said that "Combat is fun if you know how Dragon Ball works, but newbies will struggle to get their bearings, as Xenoverse 2’s tuition system is, at best, hit-and-miss".[24] "Smoother combat and great multiplayer options make Xenoverse 2 worth a play for fans of the series" was Benjamin Shillabeer-Hall's conclusion on PlayStation Universe with a score of 7/10.[25]